SAN FRANCISCO Google unveiled its attempt to catch up to Apple and Amazon in the growing market for tablet computers. It also provided a titillating glimpse at its vision of a digital future through the mind-boggling lens of Internet-connected glasses.
The debut of a long-anticipated tablet computer bearing Googles brand and equipped with its latest operating software kicked off an annual conference for about 6,000 computer programmers.
Although the tablet drew plenty of applause, the biggest crowd-pleasing moment came near the end of a nearly two-hour performance Wednesday when Google conjured a scene worthy of a Mission Impossible movie.
After Google co-founder Sergey Brin trotted on stage during the middle of a presentation, he cut away to a live video feed showing a group of skydivers the company hired to jump out of a blimp hovering about 7,000 feet above downtown San Francisco.
The skydivers were wearing a pair of Internet-connected glasses. That allowed the audience inside to see what the skydivers were seeing as they parachuted on to the roof of the building where the conference was being held.
The glasses are still a work in progress, although Google gave U.S. programmers attending the conference a chance to order a $1,500 prototype that they can start experimenting with early next year.
The Google-branded tablet, called the Nexus 7, will start shipping next month in a direct challenge to Amazon.com Inc.s Kindle Fire. The tablet also could appeal to consumers looking for a less expensive, less sophisticated alternative to Apple Inc.s iPad.
The Nexus 7 is designed specifically for Google Play, an online store that sells movies, music, books, apps and other content. That mirrors Amazons strategy with the Kindle Fire, although Amazons strength in online retailing has seeded its store with a more extensive selection than Google Play. Amazon declined comment.
By contrast, the iPads screen measures nearly 10 inches diagonally and weighs 1.44 pounds. Apple sells its latest models for $499 and up, though an older version is available for $399.
Customers can start ordering the Nexus 7 through Google on Wednesday, initially in the U.S., Canada and Australia. The device wont ship until mid-July.
Googles announcement that its putting its brand on a tablet comes a week after Microsoft Corp. did the same thing. Both moves risk alienating Googles and Microsofts hardware partners. Those companies, in turn, could be less inclined to work closely with Google and Microsoft.
The Nexus 7s price looks like a relative bargain, given that it boasts more features than the Kindle, including a front-facing camera with 1.2 megapixels. The Kindle is believed to be a break-even product for Amazon at $199. Samsung Electronics Co. sells a tablet similar to Googles for $250.
Andrew Rassweiler, an analyst with IHS iSuppli, said he suspects Google will be selling the Nexus 7 at a loss.
Google has previously put its own brand on a flagship line of Nexus smartphones. But that market is more mature than the tablet market, and there was less risk of Google alienating partners, particularly because it didnt price the phones lower than the norm.
Much like the Nexus phones, the Nexus 7 tablet will be a showcase for a new version of Googles Android operating system this one called Jelly Bean.
Although the tablet carries the Google brand, the machine will be made by AsusTek Computer Inc. Google recently expanded into the device-making business with its $12.5 billion purchase of Motorola Mobility, but the company has stressed that it intends to continue to rely on Asus and other manufacturers that have embraced Android.
Jeff Orr, an analyst with ABI Research, said Microsofts announcement of its Surface tablet last week and Googles Nexus 7 add up to a troubling situation for tablet makers such as Samsung Electronics Co., which makes the Galaxy line.
When a software-supplying partner turns around and puts out its own hardware product, is that a partner or an enemy? Orr asked.
Orr also questioned whether Googles strategy of pricing the tablet low is really going to win it any fans in the long term. Apple, he noted, dominates the tablet market with a product thats expensive but works well.
There are already other Android-powered tablets on the market, but none have proven nearly as popular as the iPad or Kindle Fire. That has raised worries at Google as more people rely on tablets to surf the Internet.
For Google, advertising dollars are at stake. If Apple retains its dominance and other players such as Amazon and Microsoft gobble up the rest of the sales, they could set up their operating systems in ways that de-emphasize Googles Internet search engine and other services. Apple develops its own system, while Amazon modifies Android for use in Kindles. Microsofts will run on a new version of Windows.
Apple already has announced that the next version of the iPad operating system will abandon Googles digital maps as the built-in navigation system. That shift could cause neighborhood merchants to spend less money advertising on Google.
The iPad currently has about 68 percent of the tablet market, according to Forrester Research. The research firm expects the increasing competition to whittle the iPads share to 53 percent in 2016, with Android-powered tablets at about 30 percent and Windows tablets accounting for the remainder. Forrester predicted 760 million tablets will be in use by 2016.
Googles user base for music, books, and movies is not nearly as strong as Apple or Amazon, so it will take time to build a strong customer base for the Nexus 7, predicted Forrester analyst Frank Gillett.
He also said the Nexus 7 and other Android tablets are at a disadvantage because computer programmers still havent built as many compelling applications for that platform as they have for the iPad.
In another expansion into consumer electronics, Google also announced a home entertainment device called Nexus Q that is similar to Apple TV, a small box that can stream music and movies over Internet connections. The Nexus Q sends content from your personal collection or YouTube to your existing TV and speaker systems. You control it through a separate Android phone or tablet.
The Nexus Q, which Google is calling the worlds first social streaming device, will be available in July in the U.S. initially and sell for $299. Apple TV currently sells for just $99. Other Internet-streaming devices, such as the Roku, that connect to TVs sell for even less than that.
The Internet-connected glasses that Google demonstrated wont be cheap either, although Brin told reporters Wednesday that the company plans to charge consumers significantly less than the $1,500 that developers had to pay for prototypes. The glasses, which Google is calling Project Glass, probably wont be released to the mass market until early 2014, Brin said.
Its not a commodity product, Brin said. We view this as a premium sort of thing.
Google began developing the Internet-connected glasses in a secret research lab more than two years ago and announced what it was working on in April. Wednesdays presentation marked the first extended demonstration of how the glasses might work.